What You Must Know About the Lagos State Tenancy Law

Living in Lagos can sometimes feel overwhelming and difficult, especially for many who are unfamiliar with the laws that govern rental agreements. The state is one of the best places to live in, but this can quickly turn into a nightmare for tenants and landlords alike if they do not understand the Lagos State Tenancy Law.

This law, which was enacted in 2011, was designed to protect both parties and create a fair rental environment. Whether you’re a landlord or tenant, this article will expose the essential aspects of this law and everything you need to know about it.

What is the Lagos State Tenancy Law?

The Lagos State Tenancy Law is a law that aims to regulate the relationship between landlords and tenants and address the common issues that arise in rental agreements. It was formerly known as the Rent Control and Recovery of Residential Premises Law, Vol. 7, Laws of Lagos State 2003. Unfortunately, many residents of Lagos are unaware of this law.

The law establishes clear rights and responsibilities for both parties, thereby helping to prevent disputes and misunderstandings. Another interesting advantage of the law is that it limits the maximum amount of rent that can be charged upfront to six months for monthly tenants and one year for yearly tenants. This change was crucial in combating the previous norm where landlords often demanded exorbitant advance payments.

Major Highlights of the Lagos State Tenancy Law

Below are some important highlights of the Lagos state tenancy law.

Section 1: This section outlines the properties exempt from the Lagos Tenancy Law, including those owned by educational institutions, emergency shelters, hospitals, and certain therapeutic facilities. In addition, specific areas like Apapa, Ikeja GRA, Ikoyi, and Victoria Island are also exempt.

Section 3: It establishes that a tenancy agreement exists whenever a landlord grants premises to a tenant, whether this agreement is written, oral, or implied. This section emphasizes the importance of recognizing various forms of tenancy agreements. It also sets the stage for understanding the rights and obligations that follow.

Section 4: In this section, the law prohibits landlords from demanding rent exceeding one year from new tenants or six months from existing monthly tenants. It also makes it illegal for tenants to offer such excessive payments, with penalties of up to N100,000 or three months imprisonment for violations. This provision aims to protect tenants from exploitative rental practices.

Section 5: According to section 5, landlords are required to provide tenants with receipts for rent payments that detail essential information such as the payment date and amount.

Failure to comply with this requirement can result in a fine of N100,000. This transparency helps maintain trust between landlords and tenants.

Section 6: Tenants have the right to enjoy their premises peacefully without disturbances from landlords or other parties. This right is fundamental to ensuring a comfortable living environment. It underscores the importance of mutual respect in landlord-tenant relationships.

Section 7: Tenants must adhere to the terms of their tenancy agreements, which include timely rent payments and obtaining landlord consent for subletting or making alterations. This section reinforces the need for tenants to fulfill their responsibilities. Non-compliance can lead to disputes or eviction.

Section 8: Landlords are obligated to ensure that tenants can enjoy their premises peacefully while also adhering to the tenancy agreement. This section emphasizes that landlords must respect tenants’ rights just as tenants must honor their agreements. This promotes a balanced relationship between both parties.

Section 9: For business premises, landlords must maintain the property adequately to prevent loss or damage to tenant businesses. If they fail in this duty, it can lead to significant financial repercussions for tenants. This provision protects tenants’ interests in commercial settings.

Section 10: In section 10 of the Lagos state tenancy law, landlords must issue separate receipts for any service charges paid by tenants and provide written accounts every six months detailing how these funds were used. This requirement ensures financial accountability and transparency in property management. It helps build trust between landlords and tenants.

Section 11: The responsibility for paying professional fees falls on whichever party engages their services. This section clarifies financial obligations in situations where professional assistance is required during tenancy matters. It helps avoid confusion regarding payment responsibilities.

Section 12: In cases of breach of conditions concerning the premises, landlords must follow legal processes before taking action against tenants. This ensures that both parties have their rights protected during disputes. Adhering to legal procedures is essential for maintaining fairness in landlord-tenant relationships.

Section 13: When no specific notice period is stipulated in a tenancy agreement, reasonable notice must be given based on the type of tenancy, whether weekly, monthly, or yearly. This provision ensures clarity in communication regarding tenancy termination. It helps prevent misunderstandings between landlords and tenants.

Section 15: A property is considered abandoned if the tenancy has expired and the tenant has not vacated it. The landlord must issue a seven-day notice before applying for court permission to recover possession of the premises. This process safeguards against wrongful eviction while allowing landlords to reclaim their properties legally.

Key Rights for Tenants

As a tenant in Lagos, it’s vital for you to know your rights under this law. These rights include:

1. Security Deposits

Landlords can only request a security deposit of up to six months’ rent. This deposit must be refunded at the end of your tenancy, provided there are no damages beyond normal wear and tear.

2. Notice Periods

If you or your landlord wish to terminate the tenancy, the law stipulates specific notice periods. For example, monthly tenants must give one month’s notice, while yearly tenants need to provide three months’ notice.

3. Protection Against Eviction

The law prohibits landlords from evicting tenants without proper notice or a court order. This means you cannot be forcibly removed from your home without due process.

Responsibilities of Landlords

Just like tenants, landlords also have obligations they must fulfill. These obligations include:

1. Property Maintenance

Landlords are required to keep the property in good condition and ensure it is habitable. This includes making necessary repairs promptly.

2. Respecting Tenant Privacy

Landlords cannot enter your rented space without prior notice unless it’s an emergency.

3. Providing Receipts

If there are service charges involved, landlords must issue separate receipts and provide written accounts of how these funds are utilized every six months.

Dispute Resolution Mechanism

One of the significant features of the Lagos State Tenancy Law is its built-in mechanism for dispute resolution in case of such an occurrence.

If conflicts arise between landlords and tenants, initial mediation is conducted by the Lagos State Real Estate Transaction Department. If mediation fails, cases can be taken to the Rent Tribunal for adjudication. This process aims to resolve disputes more efficiently than traditional court proceedings.

Conclusion

As long as you’re a resident in Lagos, it is important that you have a good knowledge of the Lagos State Tenancy Law. Whether you’re a tenant seeking the protection of the law or you are a landlord wanting to ensure compliance with legal standards, being informed empowers you to navigate the rental landscape with confidence.